Arrangement to Pay - future effect

matttye

If you can pay it back in 2-3 months then do so even if they won't remove the AP markers, as 2-3 months of AP markers is better than a year of AP markers.

If you could pay back within a week they may have just added a late payment marker, or perhaps let you off on this occasion, but the fact that you can't pay it back for 2-3 months means nothing other than an arrangement to pay will really accurately report the status of the account. They can't very well put "up to date" when you're not.

AliceBanned

I had an AR set up on a credit card in 2003.. in the days when credit wasn't a problem. I had no idea it would affect me for so long, and I paid it off slowly thinking this made no difference. Things are different now and people are more informed, and also in those days an AR, default or even CCJ could be ignored by some lenders so I was in no rush to pay. I paid it off fully in 2009, hence it still being on my file!! Took way too long I know so I think the sooner you pay it off the better. It's impact will be less the more time that passes obviously but if you could avoid it altogether things would be much easier for you years down the line. It's a shame but yes it will be there for six years after you have paid it off. On the positive side, I have been accepted for a mortgage despite the AR, as the rest of my file is reasonable.

So I wouldn't panic too much - but just try to avoid any additional problems as the AR will be noted and looked into probably when you apply for credit. My mortgage broker told me that the slightest blip can really make some difference now with many lenders, so you won't get as good deals as without it, but you won't be closed to credit altogether.